By Jon Held, President, Continental Country Club HOA
As many of you know, the process of filing for and emerging from Chapter 11 reorganization takes time. The U.S. Bankruptcy Court needs time to review documents, creditors need time to get details and ask questions, negotiations are involved and then a plan needs to be developed that will allow an organization to emerge from Chapter 11 and meet its obligations on a reasonable schedule.
Continental Country Club’s Chapter 11 reorganization filing occurred on February 9. Since I last wrote you, we have been going through the standard process of providing the court with numerous schedules relative to the financial condition of our association. Our General Manager Tahlia Murray and her team have been working tirelessly to put these schedules together and submit them to the court for review.
On February 18, 2021, we had our first hearing before the Bankruptcy Court, where the court approved our initial 6 week operating budget with the consent of our secured lender, Sun West Bank. That approval has allowed us to move forward “business as usual” in terms of the operations of the club and will further allow us to adopt and implement future budgets with the cooperation of Sun West and without further court proceedings.
We’ve also had two phone conferences with the Office of the U.S. Trustee, a division of the Department of Justice with the responsibility of monitoring bankruptcy cases – and ensuring that debtors follow the law. Our first call on March 9 was what is referred to as a “Debtor Interview” conducted with an analyst from the Trustee’s Office to answer questions about the schedules that were submitted and review our administrative obligations during the Chapter 11 proceedings.
On March 16, we had a second call, this time with creditors. Known as a “341 Creditors meeting,” the session was managed by an attorney with the Trustee’s Office. I was placed under oath and answered questions along with our legal counsel. The creditors who participated in that call included SunWest Bank and an attorney for the plaintiffs in the Lake Elaine legal matter. We were also joined by some homeowners.
All of these items are routine steps of a Chapter 11 reorganization filing. As we continue to make progress, we will keep you up to date and make this process as transparent as possible. There will be a status update with Judge Ballinger at 11 a.m. on Tuesday, April 27. As soon as we get details on how to call in for that meeting, we’ll let you know.
For the latest news about the Chapter 11 reorganization, I urge you to visit the Continental website’s Chapter 11 page and the owner’s portal. And please continue to submit your questions and comments via email. We are continually adding to the FAQ section of the Chapter 11 page to address these questions.
Lastly, we hope you’ll join us for our next board meeting this Tuesday, March 23 at 2 p.m. The Zoom link is here and the passcode is 543324.